What is the required notice period for non-renewal of a Fitstop Franchise Agreement under Minnesota Statute § 80C.14, subdivisions 3, 4, and 5?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 17 of the Disclosure Document is supplemented by the following:
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- With respect to franchises governed by Minnesota law, we will comply with Minnesota Statute § 80C.14, subdivisions 3, 4, and 5 which requires (except in certain specified cases) (1) that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Franchise Agreement and (2) that consent to the transfer of the franchise will not be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Minnesota Statute § 80C.14, subdivisions 3, 4, and 5, requires that Fitstop provide a franchisee with 180 days' notice for non-renewal of the Franchise Agreement. This statute also stipulates that consent to the transfer of the franchise will not be unreasonably withheld.
This means that if Fitstop decides not to renew a franchise agreement in Minnesota, they must inform the franchisee at least 180 days before the current term expires. This gives the franchisee a significant period to prepare for the end of their franchise operation, assess their options, and potentially negotiate with Fitstop.
Additionally, the statute protects the franchisee's right to transfer the franchise to another party, preventing Fitstop from unreasonably blocking a potential sale. This provision ensures that franchisees have the opportunity to recoup some of their investment if they choose not to renew or if Fitstop decides not to offer a renewal. Franchisees should consult with a legal professional to fully understand their rights and obligations under Minnesota law.